The Research On Vesting Conditions Of Small And Medium Enterprise Board Listed Company's Stock Option Incentive Plan

The mode of modern corporate governance turned into that,shareholders employ professional managers to operate the company.But there are conflicts of interest between the shareholders and the managers.All modern companies have a Principal-agent problem.The stock option incentive plan is common and useful to solve this problem.Since the first company listed implemented the stock option incentive plan in 2006,to December 31,2011,in China's A-share market,20 companies listed on GEM,56 companies in the SME and 36 companies listed on Main Board have implemented the stock option incentive plan.Most of companies which implemented the stock option incentive plan early have significant results of operations.From 2006-2009,there were 12 companies of SME board which implemented the stock option incentive plan,13 companies in 2010,while there were 31 companies in 2011.The total number of companies implementing incentive plan in 2010 and 2011 has an increase of 266.67%over the previous four years.Compared with Main Board and GEM,the incentive plan has a rapid development of applications in the SME board.In the stock option incentive plan,the most useful factor of restraints on the managers is the vesting conditions.The vesting conditions of the incentive plan are the examination of that whether the manager could excise the options or not.First,the paper introduces the background of writing.Second,the paper introduced the theoretical basis of the stock option incentive plan,and discussed the stock option incentive plan is applicable to the type of company.Third,the paper analyzed the vesting conditions in the stock option incentive plan.Fourth,paper analyzed the vesting conditions' statistical characteristics of stock option incentive plan on SME companies.At last,come to the conclusions of the paper.Through the statistical analysis,we know that the performance evaluation indicators are monotonous and inflexible,and the standard is lower to measure the performance of the company in planned prior.And there is not special indicator addressed to the specific the object.The main contribution of the paper is as follows:(1)Research on the vesting conditions of stock option incentive plan,and have a systemic analysis from different angles;(2)Use descriptive statistics,with factors cross-comparative analysis of the current situation of the exercise conditions,and provide data support for the conclusion;(3)Investigate the particular case,to provide references to improve the design of the vesting conditions.The paper is lack of that as follows:(1)The implementations of incentive plan were in 2010-2011.It is not perfect to verify the effect of option incentive plan;(2)Did not use model to quantify the impact on company performance of different vesting conditions(3)No comparative analysis of the differences between the vesting conditions in domestic and foreign research...